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Applied reports 30% sequential drop in sales; orders slip 11%
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Silicon Strategies


SANTA CLARA, Calif.--Applied Materials Inc. today reported a 30% sequential drop in revenues to $1.33 billion in its fiscal third quarter, ended July 29, compared to $1.91 billion in the prior three-month period. Applied's net sales were 51% lower than $2.73 billion in the same quarter last year.

The world's largest supplier of semiconductor production equipment posted a net income of $28.5 million in the just-ended quarter vs. $603.8 million in the period last year. It's new orders declined sequentially by 11% to $1.21 billion in the fiscal third quarter compared to $1.35 billion in the prior second fiscal quarter. New bookings were 63% lower than $3.28 billion in the same quarter last year.

"The industry-wide decline in demand for most semiconductor chips continued to place downward pressure on new equipment orders during our quarter," said James C. Morgan, chairman and chief executive officer of Applied Materials. "The semiconductor industry is experiencing near-historic lows in factory utilization, resulting in further cutbacks in capital spending."

Applied Materials said its gross margin for the third fiscal quarter was 40%, down from 44.8% in the prior three-month period and down from 50.9% in the third fiscal quarter of 2000.






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